Economic recovery slow and unsustainable: economists
The country’s economy is continuing to recover but at a slow and unsustainable pace, with no remarkable changes in growth model, economists said at a conference held in Ho Chi Minh City on November 11
HCM City (VNA)-The country’s economy is c꧃ontinuing to recover but at a slow and unsustainable pace, with no remarkable changes in growth model, economists said at a 🌸conference held in Ho Chi Minh City on November 11.
Despite a growth rate of 6.8 percent in Quarter 3, the growth of key sectors is slowing down, trade deficit has returned and public debt increases, Dr. Nguyen Dinh Cung, President of the Central Institute for Economic Management (CIEM) highlighted.
He added that the economy is vulnerable to regional and global economic fluctuations.
Regarding banking operation management, Nguyen Thi Hong, Deputy Governor of the State Bank of Vietnam (SBV) said the banking system faces challenges in ensuring sufficient capital for enterprises whose operations mainly rely on loans from banks.
She underscored that credit policies in 2016 will give priority to agriculture and high-technology industries while ensuring effective use of capital and addressing difficulties for enterprises and localities.
In addition, the SBV will implement comprehensive monetary tools, control inflation rates and protect the value of domestic currency to create trust among enterprises and local people, Hong said.
At the conference, participants agreed that foreign investment into Vietnam will continue to increase in 2016 in anticipation of free trade agreements (FTAs), but without suitable policy adjustment, foreign-invested enterprises, not domestic ones, will benefit from the FTAs.
They agreed that Vietnam not only needs strong reforms but also should accelerate the pace of reform in order to meet the requirements of international economic integration.-VNA
The World Bank forecast that the Vietnamese economy will grow at a speed of 6 percent in 2015, according to the East Asia and Pacific Economic Update released on October 5.
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The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
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This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
According to NordCham Vietnam Chairman Thue Quist Thomasen, the Vietnamese Government’s commitment to achieving net-zero emissions by 2050 is both a challenge and an opportunity for businesses to contribute to green and sustainable growth.
The analysis from an investment perspective shows that the economy’s growth has been heavily capital‑driven, yet efficiency remains low as reflected by Vietnam’s Incremental Capital-Output Ratio (ICOR) being significantly higher than global and regional averages. This underscores the imperative to enhance capital‑use efficiency.
(Photo: VNA)
